US stocks fall on AI spending fears: S&P 500 drops 1.8%, Intel plunges nearly 29%
U.S. stocks closed lower on Friday, October 30, 2026, as worries about the sustainability of massive artificial intelligence spending by big technology companies intensified. The S&P 500 fell 140.32 points, or 1.82%, to 7,580.07. The Nasdaq Composite dropped 747.73 points, or 2.86%, to 25,437.00, while the Dow Jones Industrial Average declined 572.25 points, or 1.09%, to 51,770.31. Reports from the Associated Press, Xinhua, and other outlets confirmed the moves.
Intel and tech sector pressure
Intel plunged nearly 29% (reported as 28.58% in some accounts), marking one of its worst days in decades after issuing a profit forecast that missed analysts’ expectations. Amazon also faced pressure following its earnings, adding to concerns about returns on heavy AI investments. Alphabet had already suffered a sharp decline earlier in the week. The technology sector was the biggest laggard, with the Nasdaq 100 also down significantly.
Treasury yields eased as investors sought safer assets, while energy and consumer staples sectors posted gains.
Broader market context
The sell-off followed a period of elevated valuations in AI-related stocks. Overnight weakness in related global markets, including a sharp drop in South Korea’s KOSPI, reflected the same concerns. For the week, the major U.S. indexes finished lower, with the Nasdaq showing a roughly 2% decline.
This article reports market facts only. It is not investment advice, and past performance does not guarantee future results.
